Question 1

Integrity is to abstain from engaging in or supporting any activity that might discredit the profession.

Accepted Answer

A) True 
 B)False

Question 2

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Is it possible to follow a strategy that is "in the middle"?

Accepted Answer

There is some dispute about the correct

Question 3

________ describes the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other organizations.

Accepted Answer

A)  Supply chain 
B)  Production process 
C)  Quality control 
D)  Customer relationship management 
A)  Supply chain 
B)  Production process 
C)  Quality control 
D)  Customer relationship management

Question 4

A cost concept used for the purposes of external reporting will always be appropriate for internal reporting.

Accepted Answer

A) True 
 B)False

Question 5

What is planning in decision making? Explain how a budget helps in planning.

Accepted Answer

Planning consists of selecting an organi

Question 6

Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other?

Accepted Answer

Planning business operations relates to

Question 7

A budget is a qualitative expression of a plan.

Accepted Answer

A) True 
 B)False

Question 8

Cost accounting provides information for both management accounting and financial accounting professionals.

Accepted Answer

A) True 
 B)False

Question 9

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

Accepted Answer

A)  Cost-benefit approach 
B)  Customer focus 
C)  Customer relationship management 
D)  Total quality management 
A)  Cost-benefit approach 
B)  Customer focus 
C)  Customer relationship management 
D)  Total quality management

Question 10

New-product development time is the time taken to ________.

Accepted Answer

A)  test the prototype and start the large scale production of a product 
B)  design and develop the prototype product 
C)  create new products and bring them to market 
D)  improvise existing products and re-launch them to market 
A)  test the prototype and start the large scale production of a product 
B)  design and develop the prototype product 
C)  create new products and bring them to market 
D)  improvise existing products and re-launch them to market

Question 11

________ is the detailed planning and engineering and testing of products, services, or processes.

Accepted Answer

A)  Plan of implementation 
B)  Design 
C)  Production 
D)  Research and development 
A)  Plan of implementation 
B)  Design 
C)  Production 
D)  Research and development

Question 12

Strategy specifies ________.

Accepted Answer

A)  how an organization matches its own capabilities with the opportunities in the marketplace 
B)  standard procedures to ensure quality products 
C)  incremental changes for improved performance 
D)  the demand created for products and services 
A)  how an organization matches its own capabilities with the opportunities in the marketplace 
B)  standard procedures to ensure quality products 
C)  incremental changes for improved performance 
D)  the demand created for products and services

Question 13

Staff management includes ________.

Accepted Answer

A)  manufacturing managers 
B)  management accountants 
C)  purchasing managers 
D)  distribution managers 
A)  manufacturing managers 
B)  management accountants 
C)  purchasing managers 
D)  distribution managers

Question 14

As part of the Sarbanes-Oxley Act, internal auditors are solely responsible for the fair representation of the business operations in the financial statements.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following would most likely be the user of financial accounting information?

Accepted Answer

A)  factory shift supervisor 
B)  distribution manager 
C)  current shareholder 
D)  department manager 
A)  factory shift supervisor 
B)  distribution manager 
C)  current shareholder 
D)  department manager

Question 16

The key to a company's success is always to be the low cost producer in a particular industry.

Accepted Answer

A) True 
 B)False

Question 17

Discuss the behavioral considerations that provide value to strategic decision making.

Accepted Answer

Management is primarily a human activity

Question 18

A budget ________.

Accepted Answer

A)  is the qualitative expression of a proposed plan of action by management 
B)  is an aid for coordinating what needs to be done to execute a plan 
C)  helps in identifying problems and uncertainties 
D)  promotes production automation 
A)  is the qualitative expression of a proposed plan of action by management 
B)  is an aid for coordinating what needs to be done to execute a plan 
C)  helps in identifying problems and uncertainties 
D)  promotes production automation

Question 19

Which of the following differentiates confidentiality and credibility under the Standards of Ethical Conduct?

Accepted Answer

A)  Credibility deals with refraining from activities that would prejudice carrying duties ethically, while confidentiality deals with communicating information fairly and objectively. 
B)  Confidentiality deals with refraining from the usage of critical information for unethical or illegal advantage, while credibility ensures disclosing the relevant information that would help the intended user's understanding. 
C)  Credibility deals with refraining from the usage of critical information for unethical or illegal advantage, while confidentiality ensures disclosing the relevant information that would help the user's understanding. 
D)  Credibility ensures appropriate level of professional expertise by continually developing knowledge and skills, while confidentiality encourages mitigation of actual conflicts of interest. 
A)  Credibility deals with refraining from activities that would prejudice carrying duties ethically, while confidentiality deals with communicating information fairly and objectively. 
B)  Confidentiality deals with refraining from the usage of critical information for unethical or illegal advantage, while credibility ensures disclosing the relevant information that would help the intended user's understanding. 
C)  Credibility deals with refraining from the usage of critical information for unethical or illegal advantage, while confidentiality ensures disclosing the relevant information that would help the user's understanding. 
D)  Credibility ensures appropriate level of professional expertise by continually developing knowledge and skills, while confidentiality encourages mitigation of actual conflicts of interest.

Question 20

Which of the following is true of financial accounting information?

Accepted Answer

A)  It is prepared based on cost-benefit analysis. 
B)  It is primarily used by managers to make internal business decisions. 
C)  It focuses on the past-oriented financial performance of a company. 
D)  It only measures the cash transactions of a company. 
A)  It is prepared based on cost-benefit analysis. 
B)  It is primarily used by managers to make internal business decisions. 
C)  It focuses on the past-oriented financial performance of a company. 
D)  It only measures the cash transactions of a company.

Exam 1: The Manager and Management Accounting

Integrity is to abstain from engaging in or supporting any activity that might discredit the profession.

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Is it possible to follow a strategy that is "in the middle"?

________ describes the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other organizations.

A cost concept used for the purposes of external reporting will always be appropriate for internal reporting.

What is planning in decision making? Explain how a budget helps in planning.

Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other?

A budget is a qualitative expression of a plan.

Cost accounting provides information for both management accounting and financial accounting professionals.

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

New-product development time is the time taken to ________.

________ is the detailed planning and engineering and testing of products, services, or processes.

Strategy specifies ________.

Staff management includes ________.

As part of the Sarbanes-Oxley Act, internal auditors are solely responsible for the fair representation of the business operations in the financial statements.

Which of the following would most likely be the user of financial accounting information?

The key to a company's success is always to be the low cost producer in a particular industry.

Discuss the behavioral considerations that provide value to strategic decision making.

A budget ________.

Which of the following differentiates confidentiality and credibility under the Standards of Ethical Conduct?

Which of the following is true of financial accounting information?

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, Just-in-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

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